There are some great ASX dividend shares that every income investor should want to own. I’m excited by the dividend growth of these two options.
WCM Global Growth Ltd (ASX: WQG)
With so many shares trading at relatively high prices, it can be understandable that it’s harder to find bargain opportunities. But, I wouldn’t look down the quality list until we find something good value. I’d rather stick with quality and accept a slightly lower yield than at the start of the year.
So, why not choose a diversified fund with good businesses which targets a good dividend yield for investors?
WCM Global Growth is a listed investment company (LIC) that aims to find businesses with impressive competitive advantages and a corporate culture focused on improving those advantages and growing profits.
It aims to beat the global share market return and has a portfolio of between 20 to 40 stocks.
I’m not expecting incredible returns, but in the past five years, it has returned an average of 16% per year, showing the strategy has worked.
The ASX dividend share has increased its half-year dividend every year since FY20 and it continues to grow its quarterly dividend.
The business has announced expected dividends equating to a dividend yield of 5.4%, with the franking credits included.
Montaka Global Fund (ASX: MOGL)
This fund, managed by Montaka, aims to achieve superior long-term compounding of investor capital. The MOGL ETF is focused on investing in long-term winners in “attractive transforming markets when they are undervalued and offer outsized return potential”.
It targets a distribution yield of 4.5% for investors, paid half-yearly. That means, if the value of the fund goes up then the distribution payouts can increase.
Currently, its largest holdings include Microsoft, Amazon, KKR, Blackstone, Alphabet, Tencent, Meta, ServiceNow, Floor & Decor and LVMH.
In the last five years it has returned an average of 13.3%, which is strong enough to enable growing payouts for investors.
With good returns and a solid dividend yield, there’s a lot to like about this fund.
